Globalization Analysis
After reading the National Geographic article and watching the video, answer the following questions.
1. What is economic globalization?
economic globalization is the process in which business corporations and country begin to operate on an international scale
2. What are the pros and cons of economic globalization, as seen in the article about the Bangladesh garment workers?
Pros- easier and quicker communication, gives businesses a competitive edge, creates more jobs in countries where there are less jobs, decreases cost of manufacturing, increases the standard of living through creating more opportunities
Cons- employment issues, child labor, low wages and terrible working conditions, contributes to income inequality
3. Give one specific example from one of the Big 6 nations of each of the following aspects of economic globalization and explain how it represents the growth of economic globalization.
a. Rise of Multinational Corporations
🇲🇽America Móvil, a telecommunications company in Mexico
🇬🇧Standard Charter, a business and finance corporation with partnerships in 🇮🇷
🇷🇺Lukoi Oil, energy and oil company, with partnerships in 🇮🇷
Shell Global, based in the Netherlands with large operations in 🇳🇬
🇨🇳Sinopec Group, oil and energy, with partnerships with 🇮🇷
b. Internationalization of Capital Markets
🇳🇬Nigeria lowered tariffs in order to join the WTO, and because of that their GDP raised. Changed from exporting food to energy and oil.
🇨🇳been aggressive in buying up land for farming in other nations
c. Movement of Manufacturing Overseas
Mexico & China- manufacturing being outsourced here
Nigeria - somewhat movement of other countries manufacturing here in order to access the local
Iran & Russia- international sanctions make it hard for them to outsource and receive other manufacturing opportunities
UK - outsources significantly to China
d. Growth of Internationally Mobile Labor Forces
Nigeria - many Nigerians work in the US or the UK
Iran & Russia - skilled workers go to other places with better chances
China- source for workers coming in, but also skilled Chinese going to america and europe
UK - attracted many laborers, but it's been impacted by brexit
Mexico: workers go to the US, and they also attract migrant workers from central america
e. Rise of “Hub” Cities
UK - London is known as a finance hub
Nigeria - Lagos is a hub city
Iran - Tehran
Mexico - Mexico City
Russia - Moscow
f. Global Booms and Busts
Iran- sensitive to oil price fluctuations
Nigeria- impacted greatly by oil
UK - 2008 financial crisis impacted banking sector
Mexico: oil prices and global trade agreements, NAFTA
China - key driver of global economic trends
Russia - oil and gass
4. Explain three advantages of economic globalization.
cheaper goods, increased prosperity, efficient economies of scale
5. Explain three disadvantages of economic globalization.
loss of manufacturing jobs in developed nations, explotation of developing nations, tax evasion